Download Using the life cycle cost calculations of the High School

FIU, SOA | Professional Office Practice |
QUIZ. PROJECT MANAGEMENT: Life Cycle Cost Calculation
Due: Next week Thursday Student Name: ______________________________________
Do the following the life cycle cost calculation for the High School example given below. The only
present value costs that will change for this exercise are Construction costs, Furnishing,
Maintenance and Energy. Assume all other factors remain the same.
Consider that there will be the following cost increases and savings:
1. Construction costs have to increase $6 per square foot
2. Furnishing costs have to increase $3.50 per square foot
3. There will be a 15% savings in Maintenance costs through careful selection in materials.
QUESTION: what percentage of energy savings are necessary to offset the cost increases
and savings described above?
Please provide a rational and simple illustration of calculations to explain your answer.